Petrol prices across the United States have climbed to their highest levels in years, placing growing pressure on household budgets and daily travel. The increase follows the outbreak of war involving Iran earlier this year, with fuel costs rising steadily since late February.
According to AAA, the national average price for petrol reached$4.56 per gallon on Thursday, more than $1.50 higher than before the conflict began. Diesel prices have also increased sharply, raising concerns about wider economic effects linked to transport and delivery costs.
For many Americans, the rise is already affecting day-to-day decisions. Some drivers say they are cutting back on travel, postponing spending, or struggling to balance fuel costs with other necessities. Economists and energy analysts cited by CBS News expect prices to remain elevated for some time, even if markets stabilise later in the year.
Rising Fuel Costs Reshape Daily Routines for American Households
In Michigan, Melissa Miles says the cost of petrol is beginning to interfere with her education. The 42-year-old social work student at Eastern Michigan University commutes around 80 miles each day between Hillsdale and campus in her 2015 Chevrolet Sonic. Speaking to CBS News, Miles said she has started missing some classes because she cannot always afford the journey. Michigan’s average petrol price has risen to $4.80 per gallon, according to the report.
“Literally every day, I have to figure out, do I have the groceries for the week, or do I have the necessities for today?” Miles told CBS News. “And then compare it to, can I miss this class?”
Miles, who is raising a five-year-old son, described trying to manage fuel expenses alongside food and household costs. Her experience reflects a broader trend identified in recent banking data. According toBank of America, lower-income households spent 4.2% of their income on petrol in March, compared with 2.7% among higher-income households.
In Macomb, Michigan, community health worker Steph Thornton said she now spends around $400 a month on fuel for her 2017 Ford Escape. Earlier this year, she estimated spending closer to $320 when petrol prices were around $3 per gallon. Thornton, a single mother of two, uses her vehicle to conduct home visits with clients. She told CBS News that many families were still recovering financially from the pandemic before facing another rise in living costs. “Things are just hitting us back-to-back,” she said.
California Records Highest Prices as Economists Warn Costs May Remain Elevated
Fuel prices have climbed particularly high in California, where the statewide average reached $6.16 per gallon, the highest figure in the country. Sacramento resident Daniel Hock said he now spends roughly $100 each week on petrol, amounting to around 9% of his pre-tax income. Hock, who works as a university admissions adviser, said he would prefer to use that money to reduce debt accumulated during a recent period of unemployment.
“I ultimately am the one footing the bill under a presidency that said that my gas prices would go down,” he told CBS News.
Diesel prices have also risen sharply nationwide. According to AAA, diesel reached$5.67 per gallon this week, compared with $3.54 a year earlier. Analysts say this could affect the cost of goods transported by road and rail.
Although President Donald Trump said the United States was making “great progress” in negotiations involving Iran, economists said fuel prices may remain high for several months. Moody’s Analytics chief economist Mark Zandi estimated that petrol prices could settle around $3.50 per gallon by the end of 2026, roughly 50 cents above pre-war levels.
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